I.

Introduction Business Needs

Cloud IT meets fast changing business needs.

Service 3-6mths

“Inflexible IT
Organization cannot
1-2yrs
support
varying
business
Traditional needs any
Infrastructure/ 6-10yrs more”
Software
Cloud IT meets
shortened IT cycles “However, cloud
Cloud-based IT can give
Infrastructure/ answers to
Software changing
business
needs”
 I. Introduction Data Explosion

With data explosion, computing service is

moving towards cloud IT era

Enterprise IT Web IT Cloud IT

 Expert only  Expert/Operator  Everyone
Data Traffic
 Internal only (Silo)  Open API
 For service
Usage
Env.

 Multitenancy,
 On-premise, Manual
automation
 Predictable IOPS  Unpredictable IOPS

 Small size data  Massive data

 High-density
 Standardization
& Integration  Multi-tenancy
HW/
SW

 Appliance HW  Scalability  Commodity HW

 Licence SW  Open Source SW

No network issue about  System network is
App important
 Switch & Transport  Dedicated
W
N

 CDN  IP Network (Shared)

NW network

1980 1990 2000 2010

I. Introduction Computer and Network

Cloud computing will be in the air,

thanks to high performing computing power and networks

“The Network is the computer”

“If network can handle in equivalent speed with
computer processing, a computing resource will be
shared and diffused into network.”
- by Sun Microsystem

Google solutions for 500 Million SMB to move into the

cloud?

“The right thing for any small business is … to do

everything in the cloud.… Need more integration with
existing databases, more languages, and workflow.”

“So we've gone from a world where we had reliable disks and
unreliable networks, to a world where we have reliable
networks and basically no disks… “
-Eric Schmidt, Google CEO (2010)
I. Introduction Business Needs

KT pursues ‘Global Top Cloud Service Partner’ with

strategies based on its core competence
 Major Factors for Quality Cloud
I. Introduction
Computing
Clustering, Automated Management and Low Cost

1 Clustering
Capacity Elasticity - How many cores in a certain node / rack / CDC
- SW control, connecting low capacity equipments
Scalability
※ Intel’s Strategy: Actively Drive X86 Market

2 Control
Speed(Agility)
- SW & HW Separation / SW Oriented
Measurement - How automatically mgt tools
operate
Automation Management
- Support cloud system
3 Low Cost (Capex/Opex)
% of Amazon / Rackspace Price - Economy of Scale
- Reduce vendor dependency
% of Current Legacy TCO
- HW Commodity,
Virtualization
 KT’s Core Competencies for Cloud
I. Introduction
Service

Fixed and Mobile Network(LTE1) + 3W2) + Landline )

The Best and Largest Data Handling Capacities

(Some Decades of Peta Data)

Knowhow for Billing and System Operation

Assets such as Land and Buildings

Hands-on Experience through

Internal Migration
“Sales of Experience”, not Sales Experience

※ 1)LTE(Long Term Evolution), 2)3W(WCDMA, Wibro,

WiFi)
II. KT Cloud Service Features Competitiveness
KT cloud service shows more competing performance
than global leaders in some areas

• 70% of Amazon’s price 1

Low Price • Better than global

leaders in areas such
as CPU, memory and
disk performance

4 2

5 Minute Performance
Installatio
n
• Service installation
within 5 minutes 3
• Physical, data and system
security
Security • Security system with
DDoS,
VPN, IPS /IDS and Firewall
 II. KT Cloud Service Features Price
Competitive ‘list price’ guarantees world beating netw
storage benefits as customers transmit and store mor

Pricing Scheme

The Most Competitive List (Unit: KRW, USD : KRW = 1: 1,100)

1
Price Memory
 The most competitive list price, CS-
Public Storage
compared to other players’
1GB 2GB 4GB 8GB 16GB

40,00
1Vcore 30,000 - - - 100GB
0
2 Minimise Customers’ Network Cost 60,00
2Vcore - 75,000 - - 200GB
0
 Minimise customers’ network cost, as
※ 1 년 약정 기준 105,00 140,00
more data are transmitted and stored 4Vcore - - - 300GB
0 0
190,00 250,00
8Vcore - - - 400GB
0 0
3 Free Mass Storage  Network : Free Shared 10Gbps(Bandwidth)
 Traffic : Free 50GByte/month, 100 KRW/month per 1GByte
 Maximise customer benefits,  Storage : 7,500 KRW/month per 50GByte
considering the increase of digital content
 II. KT Cloud Service Features Performace

Performance : KT vs. Global Leading Providers

CPU Disk I/O Memory I/O

Performance Performance Performance

A 1 A A 1
B 6 B 4 B 5
C 5 C 3 C 6
D 4 D D 3
5
E E E
3 2 4
2 1 2

Program Encoding/Encryption
Language Performance

A 3 A 3
B 6 B 5
C 5 C 6
D 4 D 4
E E
2 1
1 2
 II. KT Cloud Service Features Key Features
Orchestrating commoditised HW and open source SW
cloud provides stable and high-performed computing

1 H/W Commoditisation

High density rack (up to 32 servers accommodated)

 Cost leadership with standardisation and commoditised HW

2 Open Source SW
KT Cloud
 High performance, with the orchestration of open source SW
Computing and commoditised HW

3 Security-Oriented
 Isolation through VLAN
 Data encryption and vaccine
 DDoS, IPS/IDS, HW/SW Firewall in CDC

Cloud Data Centre with High Density and

4
Efficiency
Green Data Centre with cutting-edge ‘Hot Aisle’ cooling system
and
high density racks
 II. KT Cloud Service Features Hardware
Cloud architecture with high density racks
and high performance
Rack
Architecture
Rack • Improved performance with high density and
Active-Active system
- One rack accommodates up to 32 servers

Server • Improved computing power usage rate by

Storage virtualisation
(JBOD) - More than 15 times efficiency
Storage node
Storag • Provides high availability and cost efficiency, using
e commoditised Hardware
Storage
- Enhanced Storage IOPS through S-Node
(JBOD)

10G Switch Switch

1G Mgt Switch • High quality bandwidth with 10Gbps shared

Networ
Server • Improved stability and quality, minimising complex
k
Horizontal Networking between systems
 II. KT Cloud Service Features Software
Improved cost efficiency and flexibility,
utilising open source S/W

“Usage maximisation
of
open source S/W” S/W Description
 CloudStack  IaaS management Solution
1 Vendor Independency  PlateSpin  P2V migration solution
NexentaStor  Storage mgmt. function on virtualized environments
 Cost reduction based on open source  MySQL  Database Program
 Citrix Xen  Virtualization Solution
2 HW Commoditisation
 Hyperic  Software to manage Web Application

 High performance by orchestration  Spring  Application Framework for the Java Platform
 Splunk  systemLog datagathering and analysis
3 Evolution  ZFS  VirtualizationFile System
 Nagios  Physical server &Network monitoring
 Flexible customisation with open source  Cacti
 Monitoring Data’s History management & Reporting
 Apache  Web/Application Server Program
4 Rapid Rack Configuration tomcat
 Only 4 hours needed (from 7  Chef  AutomationProgram of server installation/composition

days)  Open VPN  VPN Solution for network between KTIS and Cloud
 CAMS  Monitoring Solution for VM & Middleware(WAS,DB)
5 Flexible Scalability
 Openstack  Distributed Storage resource management Solution
 7 days (It took over 3 months) swift
 II. KT Cloud Service Features Security
Outstanding security by isolation with VLAN
as well as DDoS, IDS/IPS and fire wall

Prevention(1) Isolation Area(2)

Cloud Portal
Service System
Firewall
VM
Operator (DB)
(Customer) Kornet IPS RVM
Disk X
Mgt
VM
ID/Password System
(Web)
Traffic Info. Authenticatio
n
Disk
Abnormal
User A Normal Status
Traffic
Traffic VM Monitoring
Bypass
(DB)
RVM Jump Box
Disk
VM ID/Password
DDoS System (Web) Authentication
Abnormal Traffic Extermination
Disk
Operator(KT)

Data Encryption/Decryption(3)
Customer User Hacker KT
 II. KT Cloud Service Features CDC
With high density and efficiency, KT Cloud Data Centre
provides more stable service for customers

f fec Cloud Gre

E
 Easy and flexible to expand iven D atUtilises
a en Data Centre space with high density racks
t
essCen
 Modularised Data Centre componets
 Saves 40% fan energy with Hot Aisle Containment,
ter
cutting-edge cooling system
- such as electricity and cooling
SecuDecrease
rity waste batteries through dynamic UPS1) &
system
BMS2)

• Installed DDoS and IPS/IDS

• Enhanced stability through dual redundant power system
• Earthquake-proof design

1) Dynamic UPS(Uninterruptable Power Supply) doesn’t waste batteries

2) BMS(Battery Management System)
II. KT Cloud Service Features

KT CDC Chilled Water Storage Tank

10 Ton * 2 System
 II. KT Cloud Service Features Portfolio
KT ucloud delivers compute, backup,
storage, database and so on.

ucloud1) Portfolio

IaaS PaaS

ucloud CS ucloud BS ucloud SS ucloud DS VDI 2) CDN IDE3)

CS- BS- SS- SaaS

RDBaaS
Public Dedicated Public

CS- BS- SS- ucloud

Dedicated Private Dedicated Home

CS- SS-
ucloud
Private Private
Pro

1) KT’s Cloud Service Brand, 2)VDI: Virtual Desktop Infrastructure, 3)IDE: Integrated Development Environment 1
III. Value proposition TCO and Process Innovation
KT Cloud service helps customers reduce TCO and
flexibly adapt to unexpected demand for IT resources
III. Value proposition TCO and Process Innovation
 III. Value proposition Internal Migration
Internal cloud migration is expected to save 80% of
server/storage/network investment budget

Investment
(Unit: Thousand USD)
• Introducing cloud IT investment
10000 Cut down
process, KT operates 574 VM’s and Investment
$12MM 1
2,755 vCores (Mar. 2011) Before
Cloud
8000
• Saves $12MM in HW investment
during 8 months since Jul. 2010
6000
- $30MM savings expected for one Start Cloud IT
investment
year to internal
Investment 2
4000 service
- 80% cost down, compared to After Cloud

former IT
2000
• Migrates 8,271 physical servers in
2011 • Historical Exchange Rate: 1 US$≒1,100 KRW
 III. Value proposition Strategies

Strategies Directions
All the SMEs are KT Cloud Customers!
• Capturing competitor’s clients (ex. IDC, Telco)

Focusing
 Procures On-Premise
Users as Customers
• Making the company use KT Cloud
• Becoming Asia cloud hub by attracting foreign clients
• Converging various network products for new BMs2)

Build the KT-Friendly Application Ecosystem!

 Establishes SaaS • Having strategic partnership with leading SaaS Players
Marketplace • Playing a role as a SaaS Aggregator through Open Market
IaaS Leverage

• Realising Scale of Economy, procuring Business Customers

and Developers

Grow in the Two-Sided Market!

 Standardisation • Establishing mobile cloud through ucloud home and N-Screen
and Platform • Creating SNS platform connected with mobile devices
• Introducing enterprise SaaS platform
※ 1) DC(Data Center), 2) BM(Business
Model),
3) API(Application Programming
 III. Value proposition Roadmap
KT Could Service Roadmap

Architectur Data Center &

e Network
• KT group DC
integration
• High performance Arch. • MokDong CDC open(’11.1Q)
(’10.11) • CheonAn CDC open
(’10.11)
• Low performance Arch.(’10.8)
• CheonAn CDC
construction (’10.8)
“201 “201
• ‘ucloud mass/pro’ open(’10.6)
0” 1”
• Start Cloud IT
investment
process (’10.7)

• ucloud CS CBT (’10.11) • Virtual

PC(VDI)
• Finish first step of KT • ucloud CS/BS open • (’11.1Q)
SaaS
Cloud transition (’10.12) (’10.12)
• ucloud DS CBT (’11.1Q)
(’10.12)
• ucloud DS open
• Finish second & third (’11.1Q)
• ucloud SS CBT & open • CDN (’11.2Q)
step of • PaaS
(’11.1Q)
KT Cloud transition (’11.2Q) • SaaS
(~’11.12) • PaaS
(’11.4Q)
- second: 1,540 servers (’11.4Q)
(’11.2)
- third: 7,779 servers
Internal transition ucloud services
(’11.12)
1) XaaS : IaaS(Infrastructure as a Service), PaaS(Platform as a Service),
SaaS(Software as a Service), DaaS(Database as a Service)
 Additional Benefits

From ‘must-have’ to ‘must-lease’

Cost reduction effects by cloud go beyond IT

itself
- US Federal Government invests saved money
into
civil service improvement

Efficient utilisation of owned asset

- community cloud

Entrepreneurship
- go or drop easily

Corporate culture innovation

 Than
Thank
Thank you

you
Thank you
Thank you

Thank you
hank you